Steelers unanimously approve $2.6mil bailout

The Illawarra Mercuryreports that Steelers Club members have voted in favour of a $2.6 million property sell off to clear debts to joint venture partners St George Leagues Club.

The deal was approved at an Extraordinary General Meeting of the Illawarra District Rugby League Club earlier this week. The club members voted unanimously in favour following a recommendation from the Steelers' nine-member board of directors.

As a result of the deal, WIN Corporation father-and-son owners Bruce and Andrew Gordon will gain a 20 percent holding in the property at 1-5 Burelli Street Wollongong, including all building, structures, car park and plant.

The deal means if the Steelers decided to sell the land or building at a future date, the Gordons would have a 20 percent stake in it.

The Steelers will now be able to clear a $2.6 million debt owed to St George.

The original debt was $8.2 million in 1999, during the early days of the St George Illawarra Dragons joint venture.

In 2006, WIN Corporation paid the bulk of the Steelers' $8.2 million debt to St George in return for a share of the Steelers' stake in the joint venture and a seat on the board.

St George retains it's 50% share in the joint venture while receiving a financial boost as the balance of the loan is finally repaid.

The Steelers club's property, plant and equipment was valued at almost $15 million, according to the 2007 financial report. The club reported a $962,169 loss in 2007.